Tuesday, December 4, 2007

Corporate Board Elections

The Securities and Exchange Commission, decided last week not to change the current rules that govern corporate board elections. Incumbent boards don’t have to print the names of candidates nominated by dissident shareholders on the official proxy ballots sent to shareholders. The cost of a campaign to get visibility for their candidates means that shareholders unhappy about excessive CEO pay for example are at a disadvantage. The way the economy works is a function of a lot of little rules that get little public debate.